Pathways to retirement

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We want to understand people’s expectations about how they will transition from work into retirement, to ensure that government and employers enable and support people to stay in work for as long as they want and in the way they want.

We’ve used data from the Longer Lives Index to shed light on these expectations.
 

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Staying in work for longer

With increases in life expectancy many people may need to work for longer to secure their desired retirement. This is easier said than done. People may experience declines in mental or physical health that reduce their ability to work, or their skills and knowledge may become obsolete as traditional jobs become automated or as particular industries decline.

But there are also opportunities too. People have more time to try different careers at different life stages. Longer working lives do not have to mean just a longer phase of work in the traditional “education to work to retirement” model. It can enable different models, with greater emphasis on investment in health, education and career throughout the life course. But this requires adjustments to employment policies and opportunities, government support, and the attitudes of employers, government and people themselves.

What are people’s expectations?

The ‘traditional’ model of retirement from a lifelong career is no longer the standard expectation. Even people in their 40s and 50s now expect to change career before their retirement, and around a third expect to reduce their hours before they stop working completely.

But this does not necessarily mean they will be able to. Many savers are not on track for the retirement income they want, so may have to work for longer than they currently expect. Another obstacle may be whether they have the opportunity to work part-time, particularly without having to change employer.  

What can employers and the government do to help?

Employers and government policy makers must support people in their plans to stay in work.

This means ensuring that training opportunities, career support and advice are available and taken up, enabling people to make the career shifts they want, and offering part-time working opportunities to those who want to reduce their hours.